Deputy PM hosts Sumitomo Mitsui Bank’s senior official

Deputy Prime Minister Vuong Dinh Hue received in Hanoi on March 5 Shosuke Mori, head of the Sumitomo Mitsui Banking Corporation (SMBC)’s Asia Pacific Division, describing the bank as an effective credit channel and a gateway for foreign investors, including those from Japan, to enter Vietnam.

The SMBC, one of the largest and oldest banks in Japan, is pursuing the new “Asia-centric” strategy which seeks to strengthen its business in Asia and Vietnam is an important part of the strategy, Mori told the Deputy PM.

As the Government of Vietnam has been restructuring the local banking system, the SMBC wants to take part in that process by sustainably developing Eximbank and supporting other local banks’ reforms in the coming time, he said. As a global bank, the SMBC expects its clients worldwide will invest in Vietnam and the bank hopes to contribute to the development of Vietnam’s banking industry with its new banking management system, he added.

Deputy PM Hue welcomed the presence of SMBC in Vietnam and the role it is playing to restructure Eximbank. He noted that a new scheme for restructuring credit institutions was adopted to improve capacity of commercial banks and accelerate the resolution of non-performing loans.

Though the restructuring process has harvested some positive outcomes but many challenges are waiting ahead, Deputy PM Hue said. The Government is committed to continue improving local business climate and providing favorable conditions for both domestic and foreign investors, he stated, adding that it will do it best to support SMBC in Vietnam.

The SMBC has made present in Vietnam since 1994 with two branches in Hanoi and Ho Chi Minh City. Last year, both of its branches posted no non-performing loans and a total of VND291.6 billion (over US$12.8 million) in net profit. It is also Eximbank’s strategic investor who currently holds 15 percent of the Vietnam-based bank’s charter capital.